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90_HB1744
New Act
Creates the Grant and Loan Program Administrative
Expenses Act. Provides that when a unit of local government
is entitled under State or federal law or regulation to
recover or retain funds to reimburse the unit of local
government for its administrative expenses incurred in the
administration of a grant or loan program, the unit of local
government will be reimbursed for indirect and direct costs.
Provides that the unit of local government shall not be
reimbursed for indirect costs if that reimbursement is
inconsistent with any conditions, limitations, or
prohibitions imposed under federal law or regulations.
Effective immediately.
LRB9005072KDks
LRB9005072KDks
1 AN ACT in relation to certain grant and loan programs.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Grant and Loan Program Administrative Expense Act.
6 Section 5. Definitions. As used in this Act:
7 "Grant or loan program" means any State or federal grant
8 or loan program administered by the Department of Public
9 Health, the Department of Children and Family Services, the
10 Department of Commerce and Community Affairs, the Department
11 on Aging, until July 1, 1997 the Department of Alcoholism and
12 Substance Abuse, or the Department of Human Services at the
13 State level, and by units of local government on the local
14 level.
15 "Indirect costs" means that portion of the costs to a
16 unit of local government that are incurred for more than one
17 purpose that is allocable to the costs of administering a
18 grant or loan program under standard accounting principals
19 and, when applicable, federal law or regulations.
20 Section 10. Reimbursement of administrative expenses.
21 When a unit of local government is entitled under State or
22 federal law or regulation to recover or retain funds to
23 reimburse the unit of local government for its administrative
24 expenses incurred in the administration of a grant or loan
25 program, the administrative expenses for which reimbursement
26 shall be made shall include the indirect costs as well as the
27 direct costs to the unit of local government. However, this
28 Act shall not permit the reimbursement for indirect costs to
29 the extent that the reimbursement is inconsistent with any
30 conditions, limitations, or prohibitions imposed under a
-2- LRB9005072KDks
1 federal law or regulation.
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.